U.S. voters backed at least $24.4 billion of bond sales

Voters across the U.S. were backing at least $24.4 billion of bond sales to support school construction and infrastructure upgrades including road and bridge repairs, led by multi-billion-dollar measures in California.

Some larger bond initiatives are failing to win voter support, with at least $19.2 billion of proposed borrowing shot down at the polls. About 52 percent of California voters rejected an $8.9 billion water bond measure, with all but 3 percent of the precincts reporting, while in Colorado dueling $6 billion and $3.5 billion measures for roads failed to gain voter approval.

The nationwide election brought about $76.3 billion of bond referendums from California to Maine, the most in an election since 2006, according to data from market research company Ipreo by IHS Markit. That signaled an increasing willingness by states and local governments to borrow for needed public works while they reap the financial gains from the nearly decade-long economic expansion.

The bulk of bond proposals were in California, where nearly $16.4 billion of state borrowing was proposed to upgrade water infrastructure, support housing programs and renovate children’s hospitals.

The referendums come after the pace of new debt issues slowed this year, in part because of a surge late last year before Trump’s tax overhaul pulled the tax-exemption for bonds sold for a key type of refinancing. The support at the ballot box is unlikely to herald a sharp increase in debt issues, however, because the securities are often sold years after they’re approved by voters.